As a growing business, it’s inevitable that you’re going to incur additional costs – that’s the price you pay for an expanding venture (no pun intended). But while costs are going to increase pretty regularly, there are a few ways that you can stabilize the expenses by making smart cost saving decisions.
You may be thinking ‘how on earth are we going to cut down on expenses without hindering the growth of our business?’ Luckily, there are plenty of ways – some of which you probably haven’t thought of, or perhaps didn’t know was an alternative cost saving solution for your business. But don’t fret, we’re about to list the many ways in which you can put the brakes on the ever-increasing expenses without threatening growth. These are all solutions and practices you can almost immediately implement in your business- so you don’t have to worry any longer about the next set of bills being sky-high.
1. Review expenses regularly and renegotiate contracts
The practice of reviewing expenses is usually carried out fairly regularly in every business – although most times only the biggest or most hefty expenses are reviewed. What you should consider, is digging deeper into the ‘nitty-gritty’ expenses, even the ones that seem minor. It’s highly likely that you’re spending money on things that you don’t need/no longer use. Another important consideration that will save you a lot of money if you’re successful in the exercise is renegotiating current contracts. Especially if you have been a long-standing client, it’s likely that you could negotiate lower fees with some of your contractors, or negotiate a better deal with your investors or other third parties.
2. Consider utility management services
There is a good chance that you are being overcharged on your utility bills, but the only way to find this out for certain is by getting a utility management company to inspect and give a report on your usage. They’ll also be able to assist you with minimizing these expenses, and you may end up saving a lot more than you expected. This is just one cost saving method that many companies overlook, but it’s worth investigating further. It will not only give you a clear indication of your usage, which is great to know so that you can cut down if the reports show that you’re over-using, but it may just save you a lot of money each month.
3. Exchange traditional advertising for modern marketing techniques
Traditional marketing is incredibly expensive – just think of the cost of TV ads! You’ll pay a few thousand for just a few minutes of air time; never mind the cost that goes into creating an ad. Today, traditional marketing techniques are not as effective as they used to be. This is because social media and the internet have taken over when it comes to smart marketing; which offers extensive reach and targeting tools. Luckily, this marketing approach is a lot cheaper and is, of course, highly effective in this modern, digital era. So consider scrapping the traditional marketing channels – or at least minimize their budget; and rather use modern marketing techniques.
4. Make smart hires that are inexpensive
Many companies think they should be hiring staff that have years and years of experience in a role to ensure the job is carried out effectively. While this is a great way of making sure you hire quality personnel; it’s certainly not cost effective. These hires are usually sitting on hefty salaries which your business may not be able to afford. The alternative cost-saving solution to this is hiring smart employees who may not have as much experience but are still highly competent in their role. Perhaps look at a younger employee who only has 3-5 years’ experience, but who expects a much lower salary than that of the person with 10-15 years’ experience.
5. Go Green
One of the greatest ways to reduce costs and make a positive change at the same time, is by being aware of your carbon footprint. Through implementing sustainable practices in your business, which ensure that recycling, waste, usage and daily office exercises are managed optimally, you’ll not only be doing your bit to save and protect the environment, but will reduce your costs too. For example, by saving electricity and water, you’ll be saving money and saving the planet – no matter how small your impact, every bit counts!